Friday, January 24, 2020

Jan 24 Trades

Jan 24 Trades


Today I closed three trades including an spx 0 DTE (zero days to expiration). The first trade  was  STZ trade based on the modified bollinger bands strategy, the second one was a spx 0 DTE trade also based on the same modified bollinger bands strategy but on 5 min candles, and the third trade was an SPX 60 DTE trade based on backtesting and probabilities. In this post I will try to explain the strategies I used for these trades, and the same strategy that I use to share my trades on the free whatsapp group that I have which is open to anyone who would like to join.

Trade 1: STZ put credit spread

In short for the modified bollinger bands strategy, I scan everyday the stocks for 5 closes below or above a modified bollinger band of standard deviation of 0.382 a well as the 50 SMA. 

On January 21, STZ came up on my scanner by showing 5 closes on the daily candles above the modified bollinger bands and 50 sma. 

On January 22 the trigger above the highest of these candles triggered so I entered a put credit spread  (See image below) and I sent out an alert on the whatsapp group.

On these kind of trades I like to take profits at 25% and go on to the next trade so when we entered we collected 0.7 on the PCS and I set a GTC order at 0.45 with our stop loss being double the credit received so in this case 1.4.

Today around 830am STZ bounced up and our profit target was hit and we closed the trade for 25% profit and we sent the alert to the whatsapp group that we closed it in case anyone was following it thus making a profit of $25 per contract. 

STZ Chart:






Trade 2: SPX 0 DTE trade

In short for the modified bollinger bands strategy, I scan spx on a 5 min candles for 5 closes below or above a modified bollinger band of standard deviation of 0.382 a well as the 50 SMA. 

At 12:20pm central time, SPX 5 min candles came up on my chart by showing 5 closes on the daily candles below the modified bollinger bands and 50 sma. 

So I placed the trigger below the lowest of these candles and in the next candle the trigger triggered so I entered a call credit spread  (See image below) and I sent out an alert on the whatsapp group.

On these kind of trades on the 0 DTE spx trades I like to take profits at 50% and go on to the next trade so when we entered we collected 0.6 on the CCS and I set a GTC order at 0.3 with our stop loss being three times the credit received so in this case 1.8.

Today around 145pm SPX  bounced down  and our profit target was hit and we closed the trade for 50% profit and we sent the alert to the whatsapp group that we closed it in case anyone was following it thus making a profit of $30 profit per contract. 

SPX 5 min candles Chart:




Trade 3: SPX 60 DTE trade

The SPX 60 DTE  trade is based on a backtesting for the last 5 years that is based on  the simple moving average. The strategy is to open a 60 DTE  SPX trade if SPX closes above the 200 SMA 70% OTM PCS. The baktest is sequential so we open a new 60 DTE trade the next trading day when the last one is closed. The backtest takes profit at 70% and stop loss of 300%. This condition for the last 5 years showed 92% win rate with 36 trades taken, 33 trades were winners. 

Below backtest results 



So back on Dec 18 2019 we opened a put credit spread 70% OTM and today because of the sell off we bought it back at 60% profit because of the sell off and did not want to leave profit on the table this way I will free some buying power and will enter a new one on Monday as the backtest suggest depending on the spx price toward the end of the day. 


Total Profit for Jan 24 2020 profits:

Trade 1: $25
Trade 2: $30
Trade 3: $60


Total: $115 per contract.

Hope this blog helps you find profitable strategies and in case you want to follow my trades please join the whatsapp group